EncoreFX’s daily market updates are written by our experienced and professional dealing team.
By Nicholas Cork
AUDUSD has spent the last 24 hours below 71 cents, the first time since the ‘flash crash’ on the 3rd Jan. The RBA came and went with no change for the 31st month in a row, with the statement a touch dovish towards inflation offset by hawkishness around employment. The AUD tried to break higher after the announcement but failed miserably, and spent the rest of the session consolidating within 0.7060/0.7090. This morning RBA Gov Lowe speaks on “the housing market and the economy”, very timely in this environment.
China yesterday announced a lower growth target of 6% -6.5%, a cut in taxes and a boost in lending, with the target still impressive in the current environment but becoming widely unbelieved from even within China where some analysts are saying more likely 1.5% – brave call from within.
China has also overnight blocked Canadian canola shipments in what is seen as an escalation of recent tensions, and as Canola accounts for 17% of Canadian exports it is not insignificant. The Canadian Foreign Minister said “we do not believe there is any scientific basis for this… we are working very, very hard with the Chinese government on this issue.” Which to me sounds similar to the recent coal hold up, and if so will this become the new way forward for Chinese foreign policy?
AUDUSD drifts lower (Reuters)
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.